Bail out or work out?
Subtitle: theoretical considerations
By: by Andrew G Haldane, Gregor Irwin and Victoria Saporta.
Contributors: Irwin, Gregor, 1971-; Saporta, Victoria; Bank of England.
Series: Working paper,; no. 219; Working paper (Bank of England : Online) ;; no.219.
Publisher: Bank of England
Published: 2004
Place of publication: London
Language: eng
Format: Electronic resource
Description: "This paper assesses various crisis resolution proposals using a theoretical model of (liquidity and solvency) crisis. The model suggests that payments standstills and last-resort lending are equally efficient means of dealing with liquidity crises, while coordinated lending through creditor committees is second best. Debt write-downs are preferred to subsidised IMF financing when dealing with solvency crises, because of the negative moral hazard implications of the latter tool. Finally, the model suggests that international bankruptcy court proposals may be superior to existing contractual approaches in securing such write-downs"--Bank of England web site.
Notes: Also available in print.
Includes bibliographical references.
Title from PDF file as viewed on 4/13/2005.
System requirements: Adobe Acrobat Reader.
Mode of access: World Wide Web.